All Home Loan Info » Home Ownership

Manufactured Home Financing – Making Home Ownership A Reality

admin — Wed, 17 Mar 2010 23:03:26 +0000

Buying that first home is an emotional experience for everyone who goes through the process. For those first time buyers who are considering a brand new just built house a manufactured home can be a good choice.

This of course raises the question “is manufactured home financing the same as when buying a traditionally built house?” The answer is yes, the vast majority of banks and lending institutions treat factory built home the same as traditional stick built offerings. This makes attaining the dream of new home ownership a reality for those who can secure mortgage financing.

The first thing we need to understand is what exactly a mortgage is?

In the simplest of terms a home mortgage is the most widely used home buying financing option available to consumers today. It is a loan from any one of a variety of lenders that include banks, credit unions, and mortgage brokers for the specific purpose of buying a home. The mortgage lender lends the money at a certain interest rate over a certain term (amount of time) during which the borrower makes payments according to the terms of the loan agreement; usually every month.

The terms and conditions stated in the loan papers are the rules that govern the mortgage throughout the length of its term. The most important part of these is terms and conditions is normally the interest rate as it will ultimately be the major determining factor for the monthly payment and how much house one can afford.

Most manufactured home financing loans offer a variety of options when it comes to how the interest rate will affects the terms. The two most common types of mortgages are the fixed rate mortgage and the ARM or adjustable rate mortgage. Just as their names suggest the way they work are pretty straight forward.

The interest rate of the fixed rate mortgage remains the same for the term of the loan, ensuring that the monthly payment will not change until the loan is paid in full. An ARM works a little differently in that the interest can and will adjust at pre-determined dates. This adjustment is based on current rates and because ARM’s usually start at a very low rate it generally adjusts in an upward direction meaning higher monthly payments that can come as quite a surprise to many homeowners. Unless you are dealing with special circumstances it is recommended to avoid adjustable rate mortgages and stick with safer fixed rate financing.

The most important thing to consider when looking for manufactured home financing is your own budget and how those monthly payments will affect it. Remember that the collateral for that mortgage is your home. Stretching your budget too far to buy that “dream home” can create future problems with your finances leading to foreclosure proceedings. As long as you stay realistic with your finances a mortgage is the way to make home ownership a reality.

–
About the Author:
To learn more about manufactured home loans and financing please visit the website Manufactured Home Loans & Refinance by Clicking Here.
Article Source

Tags:Adjustable Rate Mortgage,Amount Of Time,Buying A Home,Credit Unions,Emotional Experience,Financing Option,First Time Buyers,Fixed Rate Mortgage,Home Mortgage,Home Ownership,Interest Rate,Lenders,Lending Institutions,Loan Agreement,Loan Papers,Manufactured Home Financing,mortgage brokers,Mortgage Financing,Mortgage Lender,Offerings

Take the proper Steps to Get Your FHA Mortgage today

admin — Sun, 06 Dec 2009 08:27:58 +0000

FHA Mortgage Loan for Florida Homeowners

Take the proper Steps to Get Your FHA Mortgage today

Other FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price
Gift for down payment and closing costs allowed.
No reserves or required.
FHA regulated closing costs.
Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540.
FHA will allow a home purchase 2 years after a Bankruptcy.
FHA will allow a home purchase 3 years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs.
Less than two years on the job is allowed.
Self-Employed individuals o.k.

Apply for an FHA mortgage at

www.FHAmortgageFHAloan.com

Purchasing a Florida home is one of life’s major landmarks and for some, it is even a dream come true. At FHAmortgageFHAloan.com we understand the importance of this decision and it is our goal to make your acquisition into home ownership memorable. Regardless of whether this is your first Florida home or your third Florida home purchase we will do our best to ensure that getting you into your new Florida home is a pleasant and memorable experience.

When you begin to seriously consider purchasing a new Florida home it is important that you follow some simple steps to make sure that the Florida home process goes smoothly.

The first thing you should do is an analysis of your debt to income ratio. This important step will let you know what type of Florida home you can afford and how much your current obligations will allow you the apply for based on your monthly income and expenses.

The next important step in purchasing a new Florida FHA home loan is to get pre-approved for an FHA home loan. The peace of mind that comes with knowing that your FHA mortgage loan and credit report have been approved will allow you to shop for your new FHA home with confidence. And when you find a Florida home and are ready to make an offer the fact that you have already been pre qualified for your FHA loan amount will give the seller confidence in you as a serious buyer.

About FHA Mortgage Loans

FHA guarantees eligible Florida home loan applicants the ability to obtain FHA home loans with 3.5% down payment. FHA mortgage loans can be fully assumable. FHA mortgage loan limits apply depending upon where the Florida home is located

FHA mortgage loans provide for low down payments and the easiest qualifying guidelines to make it easier for Florida homebuyers qualify! FHA home loans are popular with Florida first time home buyers but are equally liked by moving up buyers and Florida homeowners looking for a Florida Rehabilitation loan. With an FHA Mortgage loans you can borrow up to 96.5% of the purchase price of the Florida home.

The advantages of a FHA insured mortgage product to a Florida first time home buyer are many. A Florida homebuyer may apply for an FHA mortgage loan to purchase a Florida home with little money out of pocket. FHA home loan insurance permits FHA mortgage lenders to make mortgages for Florida first time homebuyers without risk.

With an FHA home loan here are no income limitations or minimum credit score requirements when FHA insured mortgage. This is why FHA loans are among the easiest mortgage loan to qualify for and almost anyone can qualify as long as they have a reasonable credit history and can afford the monthly FHA mortgage payments. You can also combine FHA home loan programs with many Florida first time homebuyer down payment programs.

FHA Streamline mortgage Refinancing

The FHA mortgage has permitted FHA streamline refinances on FHA insured home loans since the early 1980′s. The FHA streamline refinance refers only to the amount of documentation and underwriting that needs to be performed by the FHA mortgage lender, and does not mean that there are no costs involved in the transaction.

The basic requirements of a “streamline FHA mortgage refinance” include:

The FHA mortgage loan to be refinanced must already be insured by FHA.
The refinance is to result in a “lowering” of the borrower’s monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the “streamline” refinance process.
The FHA mortgage to be refinanced should be current (not delinquent).

FHA mortgage Lenders may offer FHA streamline refinances and include the closing costs into the new FHA mortgage loan amount. This can only be done if there is sufficient equity in the Florida. FHA Streamline refinances can also be done without appraisals, but the new FHA home loan amount cannot exceed what is currently owed, that is FHA closing costs may not be added to the new FHA mortgage with those costs either be paid in cash or through the premium rate as described above.

Article Source:http://www.articlesbase.com/mortgage-articles/take-the-proper-steps-to-get-your-fha-mortgage-today-1546255.html

Tags:3 Years,Bankruptcy,Closing Costs,Debt Ratio,Debt To Income Ratio,Easier Debt,Fha Home Loan,Fha Loan,Fha Mortgage Loan,Fico Credit Score,Florida Homeowners,Foreclosure,Home Loan Programs,Home Ownership,Landmarks,Memorable Experience,Mortgage Fha,Peace Of Mind,Proper Steps,Simple Steps

Tips for Tracking Mortgage Rates

admin — Wed, 11 Nov 2009 12:10:54 +0000

If the recession has taught homeowners and those looking to buy a home anything, it is that tracking mortgage rates is an important part of home ownership. Most have learned that mortgage rates do not stat the same over a span of months. In fact, mortgage rates are volatile and can fluctuate weekly. If you are a homeowner or interested in purchasing a home soon, here are a few tips to help you track mortgage rates.

First things first, in order to track mortgage rates it helps to have an idea of what makes the rates move. Although it is difficult to predict mortgage rates, you can get a general idea of which way they are going, by starting with the key economic indicators. The average American adult is aware of the Gross Domestic Product, Unemployment rate, and Consumer Price Index. However, there are other key economic indicators that you may not be aware of, such as the Producer Price Index, consumer credit data, and housing starts.

Next, you should become familiar with mortgage tracking tools. Today, there are a number of tools you can use in order to track mortgage rates. These websites take the work out of tracking mortgage rates by putting the charts and graphs at your disposal in real time. So you can easily see the direction in which rates are going. Many of these sites are easy to navigate with charts and graphs that are easy to understand. It is important that you do your research and try out a few tracking sites or tools in order to find one that’s easy to use and a trusted source.

Depending on your needs you should have an idea of the type of mortgage rates that you want to track. Mortgage rates for 30 year fixed rates will differ from those of 20 or 10 year rates. So, it is important for you to narrow down the type of mortgage that you are interested in tracking. Some tracking tools will allow you to track more than one type of mortgage rate. And, if you are not sure what type of mortgage will work best for your situation then compare rates.

In order to get the best results you should also narrow down the region or state that you are interested in tracking. Mortgage rates will vary from region to region and state to state. Regional and state tracking is common. However, if the tool allows, or you can get the updates from a banking website you should track rates in a particular city provided you have made up in your mind the area that you wish to track. For example, it is not uncommon to see contrasting rates in a metropolitan area versus a suburban or more rural area within the same state. Narrowing it down will give a more accurate depiction of the mortgage rates, which will come in handy when its time to start shopping around. Or, in some cases may be the deciding factor when looking at multiple states or cities.

Know why you are tracking mortgage rates and have a target. Are you tracking mortgage rates for the purpose of refinancing your current mortgage, buying a new home, or selling a home? Do you have a timeframe that you need to work within? Answering these questions will give you the best idea of when to jump at your ideal mortgage rate. It will also allow you to stay calm. If you know that you are looking to act, it will help you stay level headed over wild fluctuations in the market that may otherwise cause you to panic.

Allan Young is a freelance writer who writes about mortgage” target=”_blank”>www.quickenloans.com/mortgage-rates”>mortgage rates.

Article Source:http://www.articlesbase.com/mortgage-articles/tips-for-tracking-mortgage-rates-1445182.html

Tags:30 Year Fixed Rates,American Adult,Charts And Graphs,Consumer Credit Data,Consumer Price Index,General Idea,Gross Domestic Product,Home Ownership,Key Economic Indicators,Mortgage Rate,Mortgage Rates,Mortgage Tools,Producer Price Index,Real Time,Recession,Span,Stat,Sure What Type,Tracking Tools,Unemployment Rate

Many reasons why Florida homebuyers Choose FHA mortgage loans

admin — Mon, 09 Nov 2009 13:03:42 +0000

Many reasons why Florida homebuyers Choose FHA mortgage loans.

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 1 year after a Bankruptcy.
- FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or Visit http://www.fhamortgagefhaloan.com/

Without a doubt, there’s a mortgage meltdown across Florida. Florida mortgage Lenders are going out of business, mortgage standards are getting tighter and mortgage applicants trying to buy to refinance a Florida home are finding that getting a loan is far more difficult today than it was a months ago.

The odd part of the situation is that mortgage rates remain low by historic standards. And there’s plenty of mortgage money is available for qualified applicants — it’s just not available in some of the loan formats which have become so popular during the past few years.

One of the best choices available today for Florida homebuyers is nothing other than the FHA mortgage program. FHA home loans have been round since the 1930s, the FHA mortgage has traditionally been a great home loan choice for Florida first-time borrowers and for those with low and moderate incomes. Over time the FHA mortgage program has been expanded to the point where it should be considered by all Florida home the majority of all borrowers.

What makes the FHA mortgage so good over other home loan options? The FHA Home loan has helped over 30 million borrowers purchase a home? Here are 10 key reasons to consider FHA loans if you’re in the market for real estate financing.

1. Unlike the toxic supreme home loan mortgage loans that have become so popular in the past few years — the Florida home loans which have led to so many foreclosures — the FHA mortgage loan is straightforward. There are no tricks, hidden fees, unexpected costs or dangerous payment increases. For the Florida homebuyer the FHA loan program for borrowers who want both financing and financial sanity.

2. FHA mortgage loans can often be used instead of subprime or Hard money financing. Why? FHA mortgage rates are typically way lower, And there are no prepayment fees and you can get fixed-rate FHA mortgage loans and lock-in today’s interest levels.

3. FHA loans allow you to buy a Florida home with little down. The FHA mortgage program requires just 3.5% down to purchase a Florida home. Under certain conditions FHA home loan down payment money can be supplied in the form of the gift. Be aware that besides cash for a down payment and the seller can pay up to 6% of your closing cost.

4. Many conventional mortgage loans require Florida mortgage applicants to prove that they have cash reserves on hand at the time of closing. This means you may need thousands of dollars in savings in addition to the money required for down payment and closing costs and money saved for future mortgage payments. The FHA has no reserve requirement.

5. Under the FHA mortgage program Florida sellers are allowed to credit up to 6% of the sale price in the form of “seller contributions” to cover the Florida homebuyers closing cost and prepaid taxes and insurance. In a slow market — a market where Florida home sellers make concessions to move Florida homes — the seller contribution credit provided by owners can be used to pay buyer closing costs, maybe ALL buyer closing costs except for the down payment. Be aware that any seller paid closing cost must be in writing and part of the purchase agreement reviewed by lenders.

6. If you have been in a Bankrupt or in a past foreclosure, then you need to take a look at the FHA home loan. Under FHA rules, it’s possible to qualify for an FAH home loan in as little as a year — one year for a chapter 13 bankruptcy, two years for a chapter 7 bankruptcy and 3 years for a foreclosure.

7. The FHA mortgage may allow you to borrow much more than competing loans programs because it has unusually-liberal qualification standards. With the FHA mortgage you can spend as must as 50% of your gross monthly income towards all monthly obligations on your credit report..

8. You don’t have to be a US citizen to get an FHA mortgage loan. The FHA guidelines says that the FHA home loan program is open to permanent resident aliens who can provide evidence of lawful permanent residency issued by the Bureau of Citizenship and Immigration Services (BCIS), a part of the Department of Homeland Security. Non-permanent resident aliens must show that they are eligible to work in the U.S. by producing an Employment Authorization Document (EAD) issued by BCIS.

9. You qualify for an FHA mortgage on the basis of your credit history, capacity to repay, cash to close and collateral. If you don’t have traditional credit, you can show such items as utility payment records, rental payments, automobile insurance payments and other direct reports from credit providers.

10. FHA mortgage loans are offered nationwide by thousands and thousands of FHA mortgage lenders. Because FHA home loan are available from so many sources.

Article Source:http://www.articlesbase.com/mortgage-articles/many-reasons-why-florida-homebuyers-choose-fha-mortgage-loans-1434503.html

Tags:Business Mortgage,Closing Costs,Conventional Mortgage Loan,Credit Score,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Mortgage Loans,Fha Program,Florida Florida,Florida Home Buyers,Florida Mortgage Lenders,Home Ownership,Loan Program,Mortgage Applicants,Mortgage Fha,Mortgage Loan Product,Mortgage Loan Programs,Mortgage Meltdown,Score Requirements

FHA mortgage loans provide the Best Interest Rates, ((97%w 580 Fico))

admin — Sun, 08 Nov 2009 21:37:22 +0000

FHA mortgage loans provide the Best Interest Rates

Florida FHA Mortgage Loan

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 2 year after a Bankruptcy.
- FHA will allow a home purchase 3 years after a Foreclosure.

APPLY NOW AT http://www.fhamortgagefhaloan.com/

The Federal Housing Administration (FHA) is a United States government agency created as part of the National Housing Act of 1934. The goals of this organization are: to improve housing standards and conditions; to provide an adequate home financing system through insurance of mortgage loans; and to stabilize the mortgage market.

History of FHA home loans

Back in the the Great Depression, the banking system failed, causing a drastic decrease in home loans and ownership. At this time, most home mortgages were short-term (three to five years), no amortization, balloon instruments at loan-to-value (LTV) ratios below fifty to sixty percent.The banking crisis of the 1930’s forced all lenders to retrieve due mortgages. Refinancing was not available, and many borrowers, now unemployed, were unable to make mortgage payments. Consequently, many homes were foreclosed, causing the housing market to plummet. Banks collected the loan collateral (foreclosed homes) but the low property values resulted in a relative lack of assets. Because there was little faith in the backing of the U.S. government, few loans were issued and few new homes were purchased.

In 1934 the federal banking system was restructured. The National Housing Act of 1934 was passed and the Federal Housing Administration was created. Its intent was to regulate the rate of interest and the terms of mortgages that it insured. These new lending practices increased the number of people who could afford a down payment on a house and monthly debt service payments on a mortgage, thereby also increasing the size of the market for single-family homes.

The FHA calculated appraisal value based on eight criteria and directed its agents to lend more for higher appraised projects, up to a maximum cap. The two most important were “Relative Economic Stability,” which constituted 40% of appraisal value, and “Protection from adverse influences,” which made up another 20%.

The FHA Mortgage loans Today

Back in 1965, the Federal Housing Administration became part of the Department of Housing and Urban Development (HUD). Since 1934, the FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages. Currently, the FHA mortgage loan has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. The Federal Housing Administration is the only government agency that is completely self-funded. However, although it claims to operate solely from its own income at no cost to taxpayers, there is an implicit guarantee that the taxpayer will help them in times of need.

During budget planning for 2008 HUD had been projecting $143,000,000 budget shortfall stemming from the FHA program. This is the first time in three decades HUD had made a request to Congress for a taxpayer subsidy. Even though FHA is statutorily required to be budget neutral, the GAO is projecting taxpayer funded subsidies of half a billion dollars over the next three years, if no changes are made to the FHA program.

FHA Required Down Payment

A mortgage applicant downpayment may come from a number of sources. The 3.5% requirement can be satisfied with the borrower using their own cash or receiving a gift from a family member, their employer, labor union, non-profit or government entity. Since 1998, non-profits have been providing downpayment gifts to borrowers who purchase homes where the seller has agreed to reimburse the non-profit and pay an additional processing fee. In May 2006, the IRS determined that this is not “charitable activity” and has moved to revoke the non-profit status of groups providing downpayment assistance in this manner. FHA has since stopped down payment assistance program through 3rd non profits. There is a bill currently in congress that hopes to bring back down payment assistance programs through these so called non profits.

FHA Mortgage Insurance for Homebuyers

The FHA insures only a limited range of mortgages provided by FHA-approved lenders. PMI insurers service mortgages of the conventional market. PMI is required if a homebuyer borrows more than 80% of the property’s purchase price in one loan; the FHA insurance is required for any FHA mortgage, irrespective of the size of the down payment provided. The premiums for both insurances get cancelled at a certain point (was not true of FHA premiums before Jan. 1, 2001), but the conditions for this to happen are different (see below).

Mortgage insurance is available for housing loan lenders, protecting against homeowner mortgage default. For a small fee, lenders can obtain insurance for a value of ninety seven percent of the appraised value of the home or building. FHA loans are insured through a combination of a small upfront mortgage insurance premium (UFMIP), as well as a small monthly mortgage insurance (MMI) premium.

The (UF)MIP or (Up-Front) Mortgage Insurance Premium is the upfront fee you pay either in cash at close or financed into the loan. The MMI or Mutual (sometimes called Monthly) Mortgage Insurance is your monthly premium which is included in your payment. This MMI is an annual premium which is to be remitted monthly, it must be paid for 5 years regardless of your LTV (loan to value) if after 5 years your LTV is 78% or less it may be canceled on loans originated after 1/1/01. If your loan term is 15 years or less the 5 year rule does not apply.

In many instances where the home owner has a poor to moderate credit history, the monthly mortgage insurance premium will be substantially less expensive with an FHA loan than with a conventional loan regardless of LTV – sometimes as little as one-ninth as much per month depending on the borrower’s exact credit score, LTV, loan size, and approval status. A borrower with an FHA loan always pays the same mortgage insurance rate regardless of their credit score. This is especially of benefit to borrowers who have less than 22% equity in their homes and credit scores under 620. Conventional mortgage insurance premium rates factor in credit scores, whereas FHA mortgage insurance premiums do not. When a borrower has a credit score under 620, conventional mortgage premiums spike dramatically. If a borrower has a credit score under 575, they may find it impossible to purchase a home for less than 20% down with a conventional loan, as the majority of mortgage insurance companies no longer write mortgage insurance policies on borrowers with credit scores under 575 due to a sharply increased risk. When they do write mortgage insurance policies for borrowers with lower credit scores, the annual premiums are sometimes as high as 4% to 5% of the loan amount. Based on this, if a consumer is considering purchasing a new home or refinancing an existing home, they would often be well-advised to look into the FHA loan program.

Article Source:http://www.articlesbase.com/mortgage-articles/fha-mortgage-loans-provide-the-best-interest-rates-97w-580-fico-1434615.html

Tags:Best Interest,Closing Costs,Conventional Mortgage Loan,Federal Housing Administration,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Mortgage Loans,Fha Program,Fico Score,Florida Home Buyers,Government Agency,Home Ownership,Loan Program,Mortgage Fha,Mortgage Loan Product,Mortgage Loan Programs,National Housing Act,Score Requirements,United States Government

FHA home loans for Buying a Florida home, ((97%w 540 FICO))

admin — Sat, 07 Nov 2009 12:59:27 +0000

FHA home loans for Buying a Florida home.

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA home loan program can simplify the purchase of buying a Florida home, making financing easier and less expensive than an other home loan program. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed
Seller can credit up to 6% of sales price towards closing and prepaid costs.
100% Financing available
No reserves required.
FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 1 year after a Bankruptcy.
- FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or use our quick application at www.FHAmortgageFHALoan.com

Common FHA Mortgage Questions

Why should I apply for an FHA home loan?

There are lots of good reasons to choose an FHA home loan over other Florida mortgage programs, especially if one or more of the following apply to you:

You’re a Florida first-time homebuyer.
You want to keep your monthly payments as low as possible.
You’re worried about your monthly payments going up
You don’t have a lot of money to put down on a house.
You’re worried about qualifying for a loan.
You don’t have perfect credit.

If any of these things describe you, then an FHA home loan may be right for you. Why? FHA home loans offer many benefits and a level of security that you won’t find in other loans including:

Low cost: FHA home loans have competitive interest rates because the federal government insures the loans for lenders.

Lower down payment requirements: FHA home loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.

Easier qualification: Because FHA insures your mortgage, FHA mortgage lenders may be more willing to give you FHA home loan terms that make it easier for you to qualify.

Less than perfect credit: You don’t have to have perfect credit to get an FHA home loan. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA home loan than any other mortgage program.

More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults - it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

What kinds of FHA home loans does FHA offer?

Fixed-rate loans - Most FHA home loans are fixed-rate mortgages (loans). The advantage of a fixed-rate mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

Adjustable rate loans – First-time homebuyers can be a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum FHA home loan that the interest rate on your FHA home loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment. Click for a more in-depth explanation…

Purchase/Rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home.
Read more about these loans.

Indian Reservations and Other Restricted Lands – A family who purchases a home under this program can apply for financing through an FHA-approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing and use a gift for the downpayment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value. More…

How do FHA-insured loans compare to subprime loans?

Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a $100,000 mortgage, the monthly payment for a subprime loan would be over $200 a month higher than an FHA-insured loan.

The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

How do FHA home loans compare to conventional loans?

Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Do you have to buy mortgage insurance on an FHA home loan?

Yes – as you will with most loans.

The Housing and Economic Recovery Act of 2008 provides for a one-year moratorium on the implementation of FHA’s risk-based premiums beginning October 1, 2008. Consequently, effective with new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio. The new premiums (upfront and annual) to be implemented for all loans for which a case number is assigned on or after October 1, 2008, are described below. Mortgagee Letter 2008-16 is rescinded in its entirety. Please note that certain parts of that mortgagee letter are retained and reiterated in the guidance that follows.

UFMIP= Upfront Mortgage Insurance Premiums: FHA home loans will charge an upfront premium in an amount equal to the following percentages of the mortgage:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 Percent
Streamline Refinances (all types) = 1.50 Percent

Most home loans require mortgage insurance when your downpayment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA home loan home loan compare to subprime and conventional types of loans over the life of your loan. Then compare how much each one costs monthly. With the protection and value you get from an FHA home loan you will find it’s a very good deal.

Article Source:http://www.articlesbase.com/mortgage-articles/fha-home-loans-for-buying-a-florida-home-97w-540-fico-1431847.html

Tags:100 Reasons,Closing Costs,Credit Score,Fha Home Loan,Fha Home Loans,Fha Loan,Fha Loans,Fha Mortgage Loan,Fha Program,Fico Score,Florida Home Buyers,Home Buyer,Home Florida,Home Loan Program,Home Ownership,Mortgage Fha,Mortgage Loan Programs,Mortgage Loans,Mortgage Questions,Score Requirements

Is It Possible To Get A Bad Credit Home Refinancing

admin — Mon, 21 Sep 2009 21:02:39 +0000

Refinancing your mortgage is something that happens to a lot of families, for a variety of reasons. They could be doing better financially and able to handle higher mortgage payments over a shorter period of time, or they could be going through rough times and have to extend the mortgage. Either way, refinancing is very important and an integral part of home ownership. It is important that you be able to get a bad credit home refinancing if the situation calls for it.

When you have a low credit score, it can impact you in several parts of your life, from getting worse options on credit cards and lower credit limits to not being able to get feasible loans for your budget. Some loans, even if you need them, can have such exorbitant fees and rates that they become unmanageable and not worth it, whatsoever.

Trying to get a good refinancing loan on your house can be difficult with poor credit, but a bad credit home refinancing loan is still possible. The bank will want to see something that gives them confidence that you will keep up with the payments and that you are a good investment for them to give money to. Banks are not just giving away money for fun; it is their business and their way of making money off of your money. Try to show them a positive upward trend in your credit score, or explain in a reasonable way why your score is low and why it will be improving. This way, you can have more credibility will help in your situation. When you ask for the loan or the refinance, have a game plan and stick with it. There are several websites that can assist you in this process.

For more information on getting a Bad Credit Home Refinancing, visit http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php today to find out how we can help you.

Article Source:http://www.articlesbase.com/mortgage-articles/is-it-possible-to-get-a-bad-credit-home-refinancing-1254295.html

Tags:Article Source,Bad Credit Home Loan,Bad Credit Home Refinancing,Credibility,Credit Home Loan,Credit Home Refinancing,Credit Score,Exorbitant Fees,Game Plan,Giving Away Money,Home Ownership,Home Refinancing Loan,Mortgage Articles,Mortgage Payments,Mortgage Refinancing,Poor Credit,Refinancing Mortgage,Refinancing Your Mortgage,Rough Times,Upward Trend

All Home Loan Info » Home Ownership

Manufactured Home Financing – Making Home Ownership A Reality

Related posts

Take the proper Steps to Get Your FHA Mortgage today

Related posts

Tips for Tracking Mortgage Rates

Related posts

Many reasons why Florida homebuyers Choose FHA mortgage loans

Related posts

FHA mortgage loans provide the Best Interest Rates, ((97%w 580 Fico))

History of FHA home loans

The FHA Mortgage loans Today

FHA Required Down Payment

FHA Mortgage Insurance for Homebuyers

Related posts

FHA home loans for Buying a Florida home, ((97%w 540 FICO))

Common FHA Mortgage Questions

Related posts

Is It Possible To Get A Bad Credit Home Refinancing

Related posts